Ready to withdraw from your Lifetime ISA (LISA) for your first home purchase? Congratulations! There are just a few simple steps you’ll need to go through first that we can help you with. We’ve broken these down below, so you know what to expect when the time is right.
Step 1 – Enter your details
First, you’ll need to send us your solicitor’s contact details in Settings > Withdraw > LISA > Buying first home, as they’re the person we’ll pay your LISA money to. Before you do this, double-check that your withdrawal request is eligible under these conditions. If you have any questions about your eligibility or the withdrawal process, our Support team will be happy to help. Head in-app to Settings > Help to chat to us, or email support@moneyboxapp.com.
When you request your LISA withdrawal, we’ll freeze all further payments into the account within 1 working day. Don’t worry – freezing payments won’t affect your 25% government bonus, so if you have any pending bonuses, they’ll be paid out as usual.
Step 2 – Confirm your solicitor’s details
Next, we’ll send your solicitor a ‘conveyancer declaration’ to sign, confirming that they’re the conveyancer responsible for the purchase and will use your LISA balance for this purpose once it’s paid out to them.
You’ll need to tell your solicitor whether you’d like to make a full or partial withdrawal from your LISA. The LISA can also be used for retirement after age 60, so if you’d prefer not to use all of the funds in your account for the purchase of your first home, you can leave some of the balance in the account to save for retirement. In the meantime, we’ll carry out some security checks on your account to verify your request.
Step 3 – We schedule and initiate the withdrawal
Once your solicitor has returned the conveyancer declaration and confirmed that they’re authorised to accept your LISA funds, we’ll review the request. This can take up to 5 working days while we check your form and verify the details.
As part of this, your solicitor will give us a date they need the funds by, in line with your estimated completion date.
If you have a Cash LISA, we’ll now time your withdrawal so the money reaches your solicitor in time for that date. Cash LISA withdrawals typically complete on the next working day once initiated, and we’ll keep you updated by email along the way.
If you have a Stocks & Shares LISA, the withdrawal process can take up to 5 working days, as we need to sell down all of your investments before sending the money to your solicitor as cash. Because of this, your balance may continue to fluctuate until the trades are placed, so the actual amount you receive may be slightly more or less than the amount initially requested.
Step 4 – LISA funds are received
Once your LISA funds have been withdrawn, we’ll send the money to your solicitor. They’ll need to use the funds towards the purchase within 90 days of receiving them, but you can request an extension of up to a further 90 days if needed.
If you have a government bonus pending when your withdrawal takes place, as long as this is paid out by HMRC and can be withdrawn before the completion date of your purchase, you’ll still be able to use the bonus without incurring the 25% government withdrawal penalty. Once the bonus is paid by HMRC, we will process this as a separate withdrawal.
That’s it! Once your solicitor has received the payment from us, your LISA funds will be ready to use to complete your first home purchase. Congratulations!
Any questions?
We’d be happy to help. Just get in touch with us by heading in-app to Settings > Help to start a chat, or send us an email at support@moneyboxapp.com.